When is UK construction PMI and how could affect GBP/USD?

UK construction PMI overview

The UK construction PMI for March is due for release today at 0830GMT, with the figure expected to come in a tad weaker at 52.4, however, will continue to remain in the expansion territory, with a 52.5 print seen in February.

Deviation impact on GBP/USD

 Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 45 pips in deviations up to 2 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.

How could affect GBP/USD?

A positive surprise in the manufacturing sector activity report would offer the much-needed respite to the GBP bulls, sending the rate back higher in a bid to test 1.25 handle. On the other hand, a bigger-than expected drop in the PMI reading could knock-off the GBP/USD pair below 100-DMA support located at 1.2396.

A big miss in the construction sector PMI may not come as a surprise, given yesterday’s dismal manufacturing PMI report, as the construction PMI has widely shown the similar behaviour as the manufacturing and services PMIs, Analysts Societe Generale remarked in a research note.

Key notes

GBP/USD trying to defend 100-DMA support ahead of UK construction PMI

“Traders now look forward to the release of UK Construction PMI, later during European session for some immediate respite for the British Pound.”

About UK construction PMI

The PMI Construction released by the Chartered Institute of Purchasing & Supply and Markit Economics shows business conditions in the UK construction sector. It is worth noting that the construction sector does not influence, either positively or negatively, the GDP as much as the Manufacturing sector does A result that values above 50 signals appreciates (or is bullish for) the GBP, whereas a result that values below 50 is seen as negative (or bearish).